The Enhancements to Canadas Controlled Goods Program g

Canadian Controlled Goods and ITAR Workshop P Presentation t ti

Simona Wambera Director, Controlled Goods Directorate Public Works and Government Services Canada October 19 & 20, 2011

Table of Contents
1 The Controlled Goods Program 1. 2 The 2. Th Enhancements E h t to t the th Controlled C t ll d G Goods d Program 3. ITAR and the Controlled Goods Program

Controlled Goods Program (CGP)

April 2001: The CGP came into effect via Canadas Canada s Defence Production Act and Controlled Goods Regulations
Domestic Industrial Security Program to regulate and control the access of controlled goods in Canada. (Includes examination, possession, or transfer of controlled goods) Strengthen Canadas defence, aerospace and satellite industry trade controls Prevents the proliferation of arms and technology; contributing to an integrated North American industrial security base

Controlled Goods Program (contd) (cont d)

Registration is Mandatory
Illegal possession, examination or transfer of controlled goods is an offence under Canadas Defence Production Act Maximum penalty is $2,000,000 per day and/or imprisonment for a term not exceeding 10 years Anyone who examines, possesses or transfers controlled goods in Canada, must be registered with the Controlled Goods Program Exceptions include Federal Government employees with Secret clearances, ITAR-cleared visitors
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Controlled Goods Program Procedures to Ensure Compliance

Security-assess Designated Officials (DO); foreign temporary workers and visitors Conduct compliance inspections of registered companies (including security plan, record keeping, training programs, security breach reports, etc.) (e.g., g , due to criminality) y) with Conduct further assessments ( Security and Intelligence (S&I) partners as appropriate Invoke suspension and revocation, and prosecution procedures as required p q ( (including g seizure and detention of Controlled Goods) Educate the public and DOs of legal and regulatory requirements
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Legal Obligations if you Examine, Examine Possess or Transfer Controlled Goods

Register with the Controlled Goods Program Appoint a Designated Official who:
Conducts security assessments, for the risk unauthorized transfer of controlled t ll d goods, d on officers, ffi directors di t and d employees l
Most Canadian defence companies already assess employees for reliability and trustworthiness as part of the hiring process

Develops De elops and Implements security sec rit plans

Most Canadian defence companies already have existing infrastructure for security screening and physical security

Maintains records (e (e.g. g security assessments assessments, Controlled Goods transfers) Trains employees, visitors and temporary workers Reports p security y breaches and any y changes g to the organization g and/or persons accessing Controlled Goods
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Adapting to Canadas Evolving Security Needs

Th The C Controlled ll d G Goods d P Program takes k security i very seriously. i l I In collaboration with industry and government stakeholders, continuous improvement is our guiding principle Shifting security landscape:
Terrorism Sabotage g Home-bred extremism Proliferation of weapons of mass destruction Espionage Intangible g technology gy transfer Cyber crime, Wikileaks Use of couriers to facilitate terrorist activities

Threat and Risk Assessment (TRA) conducted on Controlled Goods Program to ensure it continues to meet post-9/11 security environment
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RESULT of TRA: Controlled Goods Programs Enhanced Security Strategy

CGP shared results res lts of the TRA with ith various ario s stakeholders and developed the Enhanced Security Strategy, which we are now implementing, and includes the following: Flexibility and Partnerships to capture and address evolving security vulnerabilities Tightened security requirements vis vis--vis vis the risk of diversion of controlled goods Ensure uniform application of all processes and tools for all Controlled Goods Program stakeholders Maintain the right balance between national and North American security, and defence trade

Enhancements to the Controlled Goods Program

Based on the Enhanced Security Strategy, some of the enhancements that have been recently implemented include: More rigorous assessments A tool, and a layer above a Government of Canada Security Clearance Information sharing agreements with security and intelligence (S&I) partners Education Ed ti and d certification tifi ti of f company Designated D i t d Offi Officials i l

E h Enhancements to the h Controlled C ll d Goods G d Program (contd)

Standardized tools for Designated Officials to use to risk assess for controlled goods. Four key risk indicators: Criminality Financial Travel T lf frequency and dd duration, ti and d Significant and meaningful associations (domestic and foreign) More robust assessments of security plans (e (e.g. g relating to cybercyber security risks) and other inspection activities
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ITAR and the Enhancements to the Controlled Goods Program

Canada is unique in having an ITAR exemption related to the 1963 Defense Development Sharing Arrangement with the U.S. Government Canadas aerospace, defence and security industries generate more than $30 billion in annual sales; companies extensively use ITAR articles imported from the United States The new dual-national ITAR rule (126.18c) increases security in that it replaces nationality-based practices with more robust security measures to assess for the risk of diversion of ITAR goods d Assessments are over and above regular security clearances
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ITAR and the Enhancements to the Controlled Goods Program (contd)

The enhancements to the Controlled Goods Program, as developed, address Canadas domestic security concerns and accommodate the requirements of the dual-national ITAR rule An Exchange of Letters with the US Directorate of Defense Trade Controls signed with the Controlled Goods Directorate:
Includes clear parameters on when, for what purpose and how information may be shared between our two countries Canadas privacy laws are respected Sharing S a g pe personal so a information o at o with t foreign o e g go governments e e ts is s limited ted to instances involving criminal prosecution or investigation

The Controlled Goods Program is viewed as a strong model of p by y the United States compliance

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Strengthening North American Security Together as Allies

Canada and the United States I d Industry and d Government G We both share a common interest: Security

http:// http ://ssi ssi-iss.tpsgc iss.tpsgc-pwgsc.gc.ca/

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Contact:
Ms. Simona Wambera Director Controlled Goods Directorate E il simona.wambera@tpsgcEmail: simona.wambera@tpsgc i b @t -pwgsc.gc.ca Phone: 613613-948 948-1767

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